Question: Questions 1 . What are the nonfinancial drivers for adding an [ [ A [ facility to the LT. Va. Health System ? What are


Questions 1 . What are the nonfinancial drivers for adding an [ [ A [ facility to the LT. Va. Health System ?" What are potential reasons the board may not approve the project from a nonfinancial standpoint?" Hints. You can provide points from the case as to wh the LLAC facility would be a good addition to the L .I'd Health System from the perspective of the hospital , the patient , and overall health CAPE . Students could suggest several reasons the board may not approve the project 2. What are the differences between nonprofit institutions and for - profit institutions ? For Example . how would a for - profit hospital approach the LIAC decision ?" 3. What is the average cost of capital of the for - profit hospitals provided in case Exhibit ? ? Would this serve as a reasonable discount rate to analyze a set of for - profit [ TAC facility* cash flows ? Should Fitzgerald use this number to discount the U.Va. LIAC facility's cash Flows? Hints . I've a Market risk premium ( MAP ) Of {}; and the 10- year Treasury yield as the risk - Free Fate. I'VE the data provided in Exhibit + page 390 Determine the HACC in the cares . tax rate = 35% and tax rate = 0`
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